Atlas Biotechnologies Inc. (“Atlas”) is pleased to announce closing of a 20% strategic investment in Flavocure Biotech, Inc. (“Flavocure”), in exchange for $7.5 million (USD $5.75 million). Flavocure has developed an impressive pipeline of oncology research, with patent pending status on two therapeutic molecules which use cannabis flavonoid derivatives in the treatment of three aggressive forms of cancer - AML (Acute Myeloid Leukemia), pancreatic, and glioblastoma (brain) cancer.
Maryland, USA based Flavocure aims to be a leader in the transformation of the medicinal properties of natural products into new cures for mankind. This investment by Atlas is in line with its goal to be a global leader in the development of proven pharmaceutical drugs, derived from cannabis for medicinal use.
Flavocure is collaborating with some of the world’s most prestigious cancer research institutions and has discovered ground-breaking cannabis derived molecules with preliminary data indicating activity against therapeutically validated kinase mutation targets. One of Flavocure’s two proposed therapeutics, Cresorol, has been approved by the United States Food and Drug Administration (“FDA”) with an orphan-drug designation, which, following planned short-term toxicology studies, is anticipated to permit fast-tracking of advancement to Phase 1 and subsequent studies. Flavocure is also undertaking the development of a new drug for the treatment of both pancreatic cancer and glioblastoma.
Atlas plans to develop a breeding program dedicated to isolating additional molecules in the flavonoid spectrum and identifying further cannabinoids for potential research and supply for future drug commercialization.
“Flavocure is an excellent fit for Atlas Biotechnologies, as our business philosophy is built around curing disease and illness using cannabis derivatives. Their FDA orphan drug designation for the treatment of Acute Myeloid Leukemia, combined with their attractive oncology pipeline, made them an obvious choice for collaboration with Atlas. We intend to jointly develop specialized cannabis cultivars to further unlock the potential of targeted flavonoids in medical research,” said Sheldon Croome, Atlas CEO.
Atlas will hold a 20% interest in Flavocure, which expects to soon undertake a new equity financing, which combined with expected research grant funding in 2019, will be used to accelerate research efforts on their current three target cancers.
Dr. Henry Lowe, an industry pioneer of cannabis phytopharmaceuticals and Flavocure’s founder and Executive Chairman, added, “Our early success in finding cannabis derived molecules for new therapeutic cancer discoveries attracted the interest of a great partner in Atlas. We are very much looking forward to collaborating with them on our genetics program and other drug research programs in the field.”
The Atlas 20% investment in Flavocure is in the form of USD $500,000 cash, and the issuance of Atlas common shares at a value of $6 CAD per share.
As part of the integral future collaboration, Atlas will hold one seat on Flavocure’s initial 7-member Board of Directors – Jeffrey R. Gossain, P. Eng, VP of Operations and one of Atlas’ founding Directors, who will aid in the development of the operational and corporate structure at Flavocure.
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